Trusties and their duties

Question 1

Knight v Earl of Plymouth 1747

Answer 1

Trust is an office necessary in concerns between man and man

Question 2

Trusties are expected to perform to

Answer 2

A certain standard or duty of care

Question 3

Who can be trustee?

Answer 3

Anyone who has legal capacity to own property may be a trustee

Question 4

Number of trustees? (personalty)

Answer 4

Any number

Question 5

Number of trustees? (realty)

Answer 5

No more than four
No minimum
Two trustees required to sell land

Question 6

Number of trustees? (Testementary)

Answer 6

No more than four
Senior courts act 1981 s114(1)

Question 7

Trustee a t 1925 s26

Answer 7

Appointments of trustees must be made in writing

Question 8

S36(1) Trustee act

Answer 8

Appointment of substitute trustees in limited range of circumstances

Question 9

Trustee act 1925 s36 (statutory powers)

Answer 9

Surviving trustees may appoint replacement in writing when
Trustee dies
Trustee out UK for 12 months
Retires
Refuses to act
Unfit

Question 10

Trustee act 41(1)

Answer 10

Court has power to appoint replacement where expedient to do so

Question 11

Public trustee

Answer 11

Corporation sole whose main function is to administer small estates and have same powers and duties as other trustees
Public trustees act 1906 s5(1)

Question 12

Judicial trustee

Answer 12

May be appointed be appointed under Judicial trustee act 1896 s1
Officer of court and subject to supervision

Question 13

Custdodian trustee

Answer 13

Holds trust property and documents but plays no part in general administration

Question 14

Steps upon appointment trustee must take?

Answer 14

Find out terms of trusts
Inspect instrument
Ensure trust property vested in joint names of all trustees
Make enquiries if suspicious of past breaches

Question 15

Duties and powers

Answer 15

Duty is obligation - mandatory
Power gives authority to act but in good faith

Question 16

Trustee act 2000 s11(1)

Answer 16

Trustees may delegate powers but not to a beneficiary (s12)

Question 17

Functions that cannot be delegated?

Answer 17

Diversion of assets
Payment of fees from income or capital
Appointment of replacement or additional trustees

Question 18

Trustee act 2000 s1

Answer 18

Provides trustee must exercise such care and skill as is reasonable in all circumstances

Question 19

Common law duty?

Answer 19

Learoyd v Whiteley 1887
Trustee must not act as if money is of their own

Question 20

Trustee act 2000 s23

Answer 20

Trustee not liable for any act or default act of the agent unless trustee failed to comply with duty of care when in arrangement

Question 21

Fry v Tapson 1884

Answer 21

Agent chosen must be suitably qualified for the task and not subject to any conflict of interest in relation to the parties

Question 22

Prudence?

Answer 22

Caution

Question 23

Reasonableness?

Answer 23

Risks permitted

Question 24

Fiduciary duties

Answer 24

Someone who has undertaken act for or on behalf of another particular matter in circumstance giving rise to a relationship of trust and confidence

Question 25

Bristol v Mothew 1998 (fiduciary)

Answer 25

someone who has undertaken act for an on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence

Question 26

Fiduciary duties

Answer 26

Bristol and west building society v Motthew 1998

Must act in good faith
Must not make unauthorised profit
Must not undertake position of conflict of interest
Must not act for own benefit or benefit of third party without consent

Question 27

Keech v Sandford 1736

Answer 27

S held lease to Romford market on tryst for K who was a minor
Landlord refused to renew lease for K
S took lease for himself
K sued S for profits

Renewal impossible for K and S was in good faith